F. J. McCarty Co., Inc. v. Southern Pacific Company

This is an appeal by Southern Pacific Company, an interstate carrier, from a judgment awarding damages to F. J. McCarty Co., Inc., arising out of Southern Pacific’s delivery of two damaged cargoes of grapes.

The facts of the case are set out in detail in the District Court’s opinion reported at 289 F.Supp. 875 (N.D.Cal. 1968). They may be summarized as follows: On June 27, 1966, McCarty, an exporter of perishable agricultural products with offices in San Francisco, entered into a contract with Frutas San Martin C.A., a South American importer, to ship 1330 lugs of cardinal grapes from California to Caracas, Venezuela. The grapes were shipped to New York pursuant to a Uniform Domestic Straight Bill of Lading marked “Expedite for Export”. The cargo was delivered to the pier for shipment to Venezuela on a Grace Line vessel but was refused by Grace Line because of damage to ten or fifteen percent of the lugs and grapes. The grapes were eventually sold at auction in New York at a loss. McCarty again contracted with Frutas San Martin on July 20, 1966, for shipment of 1500 lugs of grapes. These grapes were transported by Southern Pacific to New York and, again, were rejected by Grace…